The indicators dropped mainly in the first quarter of 2015, when impacts from devaluation of the Armenian dram in late 2014 was still strong.

Banks’ profitability was also affected by economic situation in the country, the tightening of capital norms by the central bank and some risks at the financial market.

According to Moody’s Investors, Armenian banks will face difficulties in 2015 and 2016 because of Russia’s recession.

Analysts say Armenia’s highly dollarized banking sector will face a heavier pressure on quality of assets, if the national currency continues its downward motion.

Fitch Ratings, taking into account a weak operational environment and some slowdown in economic growth along with pressures coming from devaluation of the national currency and high interest rates, gave ‘negative’ outlook to Armenia’s banking sector for 2016.

ARKA News Agency’s analysts think the outlook revision needs prospects for stable development resulted in stabilization of assets’ quality and weaker pressures on banks’ capital and restoration of their liquidity. ---0----